So what: Trulia's fourth-quarter EPS loss of $0.06 was wider than expected, but a market-topping top-line -- revenue spiked 76% to $20.6 million -- coupled with upbeat guidance for the current quarter reinforces optimism over the improving real estate trends working in its favor. In fact, close rival Zillow, which will report earnings after the close, is also rallying on the news as investors speculate on similarly strong results.

Now what: Management now sees first-quarter revenue of $20.8 million to $21.2 million, representing year-over-year growth of 71% to 74%, while Wall Street expects a top line of $19.3 million. "We finished the year on a resounding note, achieving record quarterly revenue, a rapid increase in mobile traffic, and strong subscriber growth," said CEO Pete Flint. "We are well positioned to grow in 2013 as the real estate market continues its recovery." With the stock busting through its 52-week high today and trading at a forward P/E of 40, however, I'd wait for the enthusiasm to fade before buying into that turnaround talk.

2013 and beyondThe Motley Fool's chief investment officer has selected his No. 1 stock for the next year. Find out which stock it is in our brand-new free report: "The Motley Fool's Top Stock for 2013." I invite you to take a copy, free for a limited time. Just click here to access the report and find out the name of this under-the-radar company.